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An Analysis of High Profitability Mechanism by Means of Dynamism between Technological Diversification, Learning and Functionality Development

In: Management Of Technology Innovation And Value Creation Selected Papers from the 16th International Conference on Management of Technology

Author

Listed:
  • Noritomo Ouchi

    (Department of Ind. Engineering & Management, Tokyo Institute of Technology, Tokyo, Japan)

  • Chihiro Watanabe

    (Department of Ind. Engineering & Management, Tokyo Institute of Technology, Tokyo, Japan)

Abstract

Contrary to the low profitability of Japanese electric machinery firms, Canon has consistently kept high profitability. Canon has incrementally developed innovations in related technological areas. This diversification strategy seems to be related to Canon's high profitability. In particular, learning and functionality development, which are important in making a profit under the current severe price competition, can be attributed to technological diversification. This study will demonstrate the dynamism between technological diversification, learning and functionality development.

Suggested Citation

  • Noritomo Ouchi & Chihiro Watanabe, 2008. "An Analysis of High Profitability Mechanism by Means of Dynamism between Technological Diversification, Learning and Functionality Development," World Scientific Book Chapters, in: Mostafa Hashem Sherif & Tarek M Khalil (ed.), Management Of Technology Innovation And Value Creation Selected Papers from the 16th International Conference on Management of Technology, chapter 4, pages 55-72, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789812790545_0004
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